XML 29 R18.htm IDEA: XBRL DOCUMENT v3.6.0.2
FAIR VALUE MEASUREMENTS
9 Months Ended
Dec. 31, 2016
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

(9)

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The company’s supplemental plan assets are accounted for at fair value and are classified within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement, with the exception of investments for which fair value is measured using the net asset value (NAV) per share expedient.

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

Significant

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

Quoted prices in

 

observable

 

unobservable

 

Measured at

 

 

 

 

 

 

 

active markets

 

inputs

 

inputs

 

Net Asset

(In thousands)

 

Total

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Value

Equity securities:

 

$

5,164

 

 

 

 

5,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

3,207

 

 

 

 

860

 

 

 

 

725

 

 

 

 

 

 

 

 

1,622

 

 

Cash and cash equivalents

 

 

367

 

 

 

 

55

 

 

 

 

257

 

 

 

 

 

 

 

 

55

 

 

Total

 

$

8,738

 

 

 

 

6,079

 

 

 

 

982

 

 

 

 

 

 

 

 

1,677

 

 

Other pending transactions

 

 

(40

)

 

 

 

(40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fair value of plan assets

 

$

8,698

 

 

 

 

6,039

 

 

 

 

982

 

 

 

 

 

 

 

 

1,677

 

 

 

The following table provides the fair value hierarchy for the supplemental plan assets measured at fair value as of March 31, 2016:

 

 

 

 

 

 

 

 

 

 

Significant

 

Significant

 

 

 

 

 

 

 

 

 

 

 

 

Quoted prices in

 

observable

 

unobservable

 

Measured at

 

 

 

 

 

 

 

active markets

 

inputs

 

inputs

 

Net Asset

(In thousands)

 

Total

 

(Level 1)

 

(Level 2)

 

(Level 3)

 

Value

Equity securities:

 

$

4,834

 

 

 

 

4,834

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

3,374

 

 

 

 

972

 

 

 

 

739

 

 

 

 

 

 

 

 

1,663

 

 

Cash and cash equivalents

 

 

343

 

 

 

 

13

 

 

 

 

282

 

 

 

 

 

 

 

 

48

 

 

Total

 

$

8,551

 

 

 

 

5,819

 

 

 

 

1,021

 

 

 

 

 

 

 

 

1,711

 

 

Other pending transactions

 

 

260

 

 

 

 

291

 

 

 

 

(49

)

 

 

 

 

 

 

 

18

 

 

Total fair value of plan assets

 

$

8,811

 

 

 

 

6,110

 

 

 

 

972

 

 

 

 

 

 

 

 

1,729

 

 

 

Other Financial Instruments

The company’s primary financial instruments consist of cash and cash equivalents, trade receivables and trade payables with book values that are considered to be representative of their respective fair values. The company periodically utilizes derivative financial instruments to hedge against foreign currency denominated assets and liabilities, currency commitments, or to lock in desired interest rates. These transactions are generally spot or forward currency contracts or interest rate swaps that are entered into with major financial institutions. Derivative financial instruments are intended to reduce the company’s exposure to foreign currency exchange risk and interest rate risk. The company enters into derivative instruments only to the extent considered necessary to address its risk management objectives and does not use derivative contracts for speculative purposes. The derivative instruments are recorded at fair value using quoted prices and quotes obtainable from the counterparties to the derivative instruments.

Cash Equivalents.  The company’s cash equivalents, which are securities with maturities less than 90 days, are held in money market funds or time deposit accounts with highly rated financial institutions. The carrying value for cash equivalents is considered to be representative of its fair value due to the short duration and conservative nature of the cash equivalent investment portfolio.

Spot Derivatives. Spot derivative financial instruments are short-term in nature and generally settle within two business days. The fair value of spot derivatives approximates the carrying value due to the short-term nature of this instrument, and as a result, no gains or losses are recognized.

 

The company had no outstanding spot contracts at December 31, 2016. The company had two foreign exchange spot contracts outstanding at March 31, 2016, which had a notional value of $1.4 million and settled April 1, 2016.

Forward Derivatives. Forward derivative financial instruments are usually longer-term in nature but generally do not exceed one year. The accounting for gains or losses on forward contracts is dependent on the nature of the risk being hedged and the effectiveness of the hedge. Forward contracts are valued using counterparty quotations, and we validate the information obtained from counterparties in calculating the ultimate fair values using the market approach and obtaining broker quotations. As such, these derivative contracts are classified as Level 2.

 

At December 31, 2016, the company had no remaining forward contracts outstanding. The combined change in fair value of the Norwegian kroner (NOK) forward contracts settled during the nine months ended December 31, 2016 was $0.7 million, all of which was recorded as a foreign exchange loss because the forward contracts did not qualify as hedge instruments. All changes in the fair value of the settled forward contracts were recorded in earnings.

 

At March 31, 2016, the company had 13 Norwegian kroner (NOK) forward contracts outstanding which had expiration dates between July 1, 2016 and November 10, 2016. The combined change in fair value of the outstanding forward contracts during the fiscal year ended March 31, 2016 was $0.1 million, all of which was recorded as a foreign exchange loss because the forward contracts did not qualify as hedge instruments. All changes in the fair value of the forward contracts were recorded in earnings.

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Quoted prices in

 

 

observable

 

 

unobservable

 

 

 

 

 

 

 

active markets

 

 

inputs

 

 

inputs

 

(In thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Cash equivalents

 

$

612,768

 

 

 

612,768

 

 

 

 

 

 

 

Total fair value of assets

 

$

612,768

 

 

 

612,768

 

 

 

 

 

 

 

 

The following table provides the fair value hierarchy for the company’s other financial instruments measured as of March 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

Significant

 

 

Significant

 

 

 

 

 

 

 

Quoted prices in

 

 

observable

 

 

unobservable

 

 

 

 

 

 

 

active markets

 

 

inputs

 

 

inputs

 

(In thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Cash equivalents

 

$

643,770

 

 

 

643,770

 

 

 

 

 

 

 

Total fair value of assets

 

$

643,770

 

 

 

643,770

 

 

 

 

 

 

 

 

For disclosures related to assets and liabilities measured at fair value on a nonrecurring basis refer to Note (15).